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Question : When MU is positive, what happens to TU?

Option 1: It decreases.

Option 2: It becomes the highest.

Option 3: It remains constant.

Option 4: It increases.


Team Careers360 16th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: It increases.


Solution : As long as MU is positive, TU rises with an increase in commodity consumption. TU increases at a decreasing rate during this phase because MU from each successive unit tends to diminish.

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